UK government confirms Machine Games Duty set to rise
The UK government has announced another gambling tax increase, raising Machine Games Duty from 20% to 25% for higher-stakes gaming machines from April 1, 2027.
Chancellor John Healey confirmed the increase in his October 28 Budget, extending the government’s taxation changes beyond the online gambling sector, with it set to target net takings on select slot machines.
The higher rate will apply to machines with maximum stakes exceeding £1 or maximum prizes exceeding £100, affecting equipment commonly found in adult gaming centres, betting shops and casinos.
The government said the increase would help fund business rates support for high street businesses while protecting lower-stakes machines commonly found in pubs and seaside arcades.
Various operators and the Betting and Gaming Council have spoken out against the proposed changes, saying it will force many business to the wall and cost up to 16,000 jobs, in an already ailing market.
The announcement follows the increase in Remote Gaming Duty from 21% to 40% in April 2026. A separate increase in remote betting duty from 15% to 25% is scheduled for April 2027, excluding qualifying UK horse racing bets.
The Budget also proposes transferring responsibility for Machine Games Duty to suppliers operating machines under profit-sharing agreements from April 2028.
A consultation on the proposed liability changes will remain open until January 20, 2027.
